Chapter 12 is entitled “Total quality management (TQM) and purchasing.” Preliminary studies indicate that assembly time is roughly proportional to the number of parts assembled. It has been shown that the number of parts in a design can be decreased by 20–40 percent when engineers are told to design the product to minimize the number of parts. | 1 Chapter 12: Total Quality Management (TQM) and Purchasing Purchasing and Supply Chain Management, 3rd edition, Copyright 2013, W. C. Benton Jr., All rights reserved Content Basics of TQM Statistical process control (SPC) Quality awards Other quality related activities 2 Total Quality Management (TQM) TQM A continuous improvement process Beyond the traditional quality view The entire organization works as a team Purchasing is a critical process of total quality management Need high-quality raw materials or component parts from suppliers 3 Traditional vs. TQM Organizations Traditional view of quality Looks only at the quality of the final product or services TQM view of quality Looks at the quality of every aspect of the process that produces the product or service 4 TQM and Supply Chain Supply chain TQM can lead to a competitive advantage for the supply chain as well as the members To be effective, buying organizations must: Select suppliers with a TQM philosophy Replace suppliers . | 1 Chapter 12: Total Quality Management (TQM) and Purchasing Purchasing and Supply Chain Management, 3rd edition, Copyright 2013, W. C. Benton Jr., All rights reserved Content Basics of TQM Statistical process control (SPC) Quality awards Other quality related activities 2 Total Quality Management (TQM) TQM A continuous improvement process Beyond the traditional quality view The entire organization works as a team Purchasing is a critical process of total quality management Need high-quality raw materials or component parts from suppliers 3 Traditional vs. TQM Organizations Traditional view of quality Looks only at the quality of the final product or services TQM view of quality Looks at the quality of every aspect of the process that produces the product or service 4 TQM and Supply Chain Supply chain TQM can lead to a competitive advantage for the supply chain as well as the members To be effective, buying organizations must: Select suppliers with a TQM philosophy Replace suppliers that ignore the TQM Investigate customer requirements Include suppliers in the new product development process 5 TQM Implementation Failures Factors associated to failures: Lack of a quality focus throughout the supply chain Lack of a sense of urgency for change throughout the buying organization Lack of a strategic plan for change Lack of a customer or supplier focus Lack of positive communications throughout the buying organization Lack of the buying organization’s employees’ integration and involvement Lack of long-term view Lack of leadership internally and externally 6 Quality Requirements for Suppliers Convey quality expectations Suppliers’ quality assurance systems must be consistent with the in-house quality requirements of the customer Specify the agreed-upon quality targets in detail PPM target agreement Field failure and reliability requirements Warranty agreement Urgency to solve problems 7 Manufacturing Process Control The traditional approach Reactive and expensive Select .
